You may have a million-dollar idea for the next revolutionary product, app or business, but without money, you will struggle to get your venture off the ground. Even the most humble companies that boast about starting in a garage or a Canadian basement still needed money to get off the ground. Finding the money that you need to get your startup going may be easier than you think if you know where to look.
Business owners in Canada and worldwide have to be prepared to make sacrifices. That means long hours, scraping cash together from every available source, and taking the significant risks that mean success. As your business grows, you will need more capital, but you will still need a bit of cash to start things off to get started.
The most common concern for new entrepreneurs is finding the money they need to get their ventures going. The good news is that there are plenty of places to find the cash you need. Guaranteed loans for Canadians, clearing out your savings, and looking for a guardian angel are just a few of the ways you can scrape together the money for your startup.
The most logical place for startup owners to find financing is inside their resources. Clearing out your bank account, using the equity on your home, and charging your credit cards are simple ways to find the cash to get your business running. The more money you can find personally, the less money you will need to borrow from outside lenders. This means that as you start, you won’t be attached to any high-interest payments.
Family & Friends
Asking your family and friends to pitch in on your business dreams can be intimidating. The truth is that your immediate circle is where you may find the most support, even if it isn’t financial. You will never know until you ask, and you may be surprised by the response and generosity you find. It’s a good idea to approach a family member with a formal business plan so that they can witness your seriousness of purpose before they consider lending you money.
An ideal place to start looking for outside funds is with an Angel Investor. These generally affluent people with money to invest are often looking for exciting startups to put their money behind. Angel investors can invest anywhere from $10,000 to several million. Some investors will insist on a percentage takeaway from the business; however, it may be a good deal if they can put up the capital.
Small Business Loans
Looking for money to start a business could start with meeting traditional lenders. If you are looking for business funding, visit your bank to find out about your options. Before your meeting, you should have created a formal business plan for your lender to review.
One of the most modern and unique ways of funding your startup is through the kindness of others. Crowdsourcing has become a charitable outlet for millions of people who want to help others make their dreams come true. Online platforms like Kickstarter can help you to put your plea out to the internet public. Create a “story” and ask for random users to give what they can to your enterprise.
Starting a business takes sacrifice and dedication and money. If you want to launch your startup, but are still looking for funding, try some of these financial sources to help you scrape together the money you need to succeed.